Zero Dep vs. Engine Protect: Choosing Your Car Insurance Add-on

You have just bought your dream car and want to ensure it stays in excellent condition. That is where car insurance and add-ons come into play. A car insurance policy is an agreement between you and an insurer, where you pay a premium in return for financial coverage against damages due to accidents or other incidents. 

While comprehensive insurance typically covers vehicle damage, property loss, and medical expenses, it may not include everything. Add-ons like zero depreciation and engine protection provide extra security. This blog explores the key difference between zero dep and engine protection add-ons to help you choose the one that best fits your needs.

Depreciation refers to the decreased value of a car due to time, wear, and tear. A zero depreciation cover will ensure that during a claim settlement, you do not have to pay any deductibles. The claim will pay for the full replacement of the car parts. So, if you have bought a new car, buying a zero depreciation add-on makes perfect sense since it will reduce any extra out-of-pocket expenses. 

Here are some benefits of a zero depreciation cover:

Exclusions of zero depreciation cover are: 

It is an addition to a regular comprehensive car insurance plan with an extra set of unique benefits and features. Owning this cover helps to get reimbursement for replacing or repairing damaged engine parts.

Since most insurance companies do not provide coverage for engine damage in their regular comprehensive insurance policies, engine protection remains susceptible. Usually, the cost of an engine protection add-on is only 2% of the car's value. So, it seems wise to invest beforehand to save on extended expenses in the future. 

Check out the benefits of an engine protection cover:

The following are not covered under the engine protection add-on:

Zero depreciation and engine protection are valuable add-on covers for car insurance. While both help reduce out-of-pocket expenses in case of damage, they serve different purposes and offer distinct benefits. 

Let us find out the differences in detail from the following table:

Depending on your budget and the age of your car, you can decide whether to purchase a zero-depreciation or an engine protection cover. If you are buying a new car and living in an accident-prone zone, buying a zero-depreciation add-on will be wise. In contrast, if you are worried about the engine condition of your pre-purchased car, you could protect it with an engine protection cover by adding a little more to your comprehensive car insurance premium.